Smart Homeownership Blog

It's a Buyer's Market: More Housing Inventory Everywhere

Wed, 04 Apr 2007 21:54:38 -0800

For people who are thinking at selling their houses, the timing couldn't be worse. Higher inventory numbers are reported in each of the 18 major markets. Will it be a slippery slope from here?

Best and Worst Housing Markets in America

Tue, 06 Feb 2007 22:11:12 -0800

I start to have a bit seller's remorse now. Seattle's housing market is still strong after many year's doyble-digit price appreciation. Can I still afford a house when I move back?

Zillow And Zestimates Facing Question Markets

Sat, 09 Dec 2006 14:59:47 -0800

Seattle Times business reporter Elizabeth Rhodes examined the accuracy of the free online home price appraisal site Zillow and the result is not positive. After all, online appraisal can never replace a realtor's experience in a neighborhood and access to the physical details of a property.

How To Get The Cheapest Homeowner's Insurance

Wed, 25 Oct 2006 22:28:39 -0800

Before you look for the absolute cheapest home owners insurance, make a short list of decent insurance companies. You can type "insurance company ratings" into any search engine and get some free information on the financial strength of the various companies. You want a company that is going to be around when you need them. Then, call a company on the list or get a quote online. Ask a lot of questions, first, though. There may be ways to save money that you hadn't thought of, or aren't on the list below. Be sure that you understand what is covered and what isn't. Take notes, writing down the exact policy limits and deductible amounts and anything else relevant. You are going to need this information to accurately compare the quote to others. What you are really looking for is not the cheapest home owners insurance, but the cheapest way to get the policy you need. With that in mind, here are some ways to lower that premium. 1. Have a higher deductible. Insurance is for disasters, not small stuff, so plan to pay the first $1000 someday when something happens. Meanwhile you'll save money every year. Does this make you uncomfortable? Here's a solution: If the annual premium is say, $80 less with a higher deductible, put that $80 into a special account each year. You'll eventually have the whole deductible covered, or if you have no claims, you'll have extra money for retirement. 2. Ask about a car / home discount. Usually you can get a lower rate if you car is insured with same company as your house. Note the exact criteria and limits for the auto policy, though. You'll want to fairly compare this part of the policy with others as well. 3. Get at least three quotes. Use your notes to make sure that each company is quoting the same policy limits, and roughly the same policy conditions, so you can honestly compare the quotes. 4. Use independent agents. Because they are not limited to one company, they can sell you policies from whichever companies are cheapest, or best suit your needs. 5. Ask about special discounts. Non-smokers usually get a discount. You may get a discount for security alarms as well. 6. Make sure the home is safe. Whether or not there is an inspection before the policy is issued, you don't want to lie to get cheap rates. In other words, you really should have smoke alarms, locks on the doors, a fire extinguisher, and an updated furnace. 7. Check the coverage on contents. If you don't really have $40,000 worth of stuff in the house, don't pay for the coverage. When the time for a claim comes, the insurance company won't pay for value that wasn't there, but they will collect for it if you let them. In the end, you may never get a perfect comparison of rates. Some insurance companies won't have the exact same policies available as others. They may each have their own minimum content coverage requirements, for example, or a minimum policy limits based on square footage. Still, if you use the guidelines here, you will get close to the cheapest home owners policy - for the coverage you need.

How To Avoid Cancellation Of Homeowner's Insurance?

Wed, 25 Oct 2006 22:28:39 -0800

Instead know how to claim your rights and how to avoid getting your current insurance cancelled. Some states have laws prohibiting insurers from ¨non-renewing¨ existing homeowner customers who pay their premiums on time. But in most states, insurers are free to ¨non-renew¨. Nevertheless, it is only in certain situations that insurers have a legal right to cancel a deal and you should check the contract to see how this situation is regulated in it. Avoiding Insurance Cancellation It is often noticed that insurers rarely cancel a homeowner’s policy before it expires. But if the insured does something like a potential safety hazard on the property, which invites a risk on the insurer, the latter is usually allowed to cancel an existing policy. Nevertheless, such cases are rare and you should know then because they are contained in the policy. Prevent Non-Renewal Notices Homeowner’s insurance, just like automobile insurance, is a necessity which many of us think that will never come to use. But accidents, fire, theft create situations where you pat yourself for having an insurance cover. But keep in mind that filing too many homeowners’ insurance policies can trigger situation of non-renewal claims. If you are buying a house that has a history of several claims, you may find it difficult or even impossible to buy homeowner's insurance. You may be a new buyer, but the home seller's history of insurance claims will affect your ability to obtain insurance and the rate you will ultimately pay. As a result, smart homeowners have come to realize that one should not file for insurance claims unless the loss is substantial. By raising the policy deductible from $1,000 to $2,000 or more, the house owner will be able to save on homeowner's insurance premium. More important, it will reduce the non-renewal risk when the claim is filed. Replacement Cost Is The Key To Insuring Amount It is also seen that some homeowners indulge in insuring for the amount of their mortgage balance which is not advisable as the mortgage balance has nothing to do with the home's replacement cost. For example, if you recently bought your house for nothing down with a 100 percent mortgage, you don't need a homeowner's insurance policy for the amount of your mortgage balance. Cut your liability insurance coverage. Homeowner's insurance policies include liability coverage. For example, if I visit your home and trip over a loose area rug, you could be liable for my injury. However, rather than carry expensive homeowner's liability coverage, you can usually save and obtain better coverage by slashing your homeowner's policy liability limit and buying an additional umbrella liability policy. In the last few years, the homeowner's insurance market has changed drastically. Before filing claims, homeowners should also visualize the adverse fallouts, possibly policy non-renewal. Homeowners should avoid filing claims unless absolutely necessary. Last, but not the least, consult at least three local homeowner insurance agents before closing on any deal.

Quick Facts of Title Insurance

Tue, 24 Oct 2006 22:28:39 -0800

You are probably familiar with common insurance – automotive insurance, life insurance, health insurance, and homeowner’s insurance. You might even be familiar with certain branches of each kind of insurance, such as the different levels of coverage available for automotive insurance, the different kinds of life insurance policies offered, the regulations that come with some health insurance policies, and whether or not you even need homeowner’s insurance. But are you familiar with title insurance? If not, read on for a quick education on title insurance policies. Title insurance, most commonly, is an insurance policy that is purchased to protect the owner and the property – usually land – from claims against the ownership of the property. In other words, title insurance will protect you in the event that someone claims you don’t own property that you do, in fact, own. Depending on the specific title insurance policy, you can be compensated for all procedures involved in proving your ownership of the property. Such procedures include hiring an attorney as defense and court proceedings. Depending on the specific title insurance policy, a title insurance policy will pay for the fees related to such procedures, and reimburse you for the money spent in the event that you win the case. Having a title insurance policy is important because at anytime someone may show up at your door claiming to have rights to your property. Since property such as land is not something that deteriorates and just disappears or finds a new home in a junkyard, there are most likely people who have had some business with your land property at one time or another. When you purchase your property, you may actually be purchasing land that others have certain rights to. In other words, you may not be getting a clear title. If this happens to you – if someone claims to have certain rights to your property – a title insurance policy will come in handy.

How Much Will Home Price Drop?

Tue, 10 Oct 2006 05:25:37 -0800

Moody's Economy.com predicts that home price will take a dive in these 100 most populated markets. Is your neighborhood on the list?

A Primer Of Homeowner's Insurance

Tue, 10 Oct 2006 04:57:27 -0800

Your home is generally your greatest asset and one that you can’t afford to loose so make sure you don’t skimp on your homeowners insurance. Unlike car insurance it is not illegal to own a home without taking out homeowners insurance but if your home is financed in any way by a third party lender then the likelihood is that you will have to take out homeowners insurance at least to cover the building. Homeowners insurance is normally split into two basic categories, buildings and contents. Some people take the risk and don’t take out any insurance against the contents of their home but they probably have never worked out how much it would cost to replace everything they own. Others don’t pay much attention to the amount of liability cover that is included in their homeowners insurance. For me this is a big risk. If someone has an accident in your home they will be claiming against your homeowners insurance and if you don’t have the cover they could then be looking to you for compensation! The element of your homeowners insurance that relates to the building covers you for the cost of rebuilding your home and other buildings (that you own) in the immediate vicinity of your home (such as garages and summer houses) in the event of fire or other disasters. You need to make sure your insurance covers you for the full cost of clearing the site and rebuilding your home. Always check out the insurance policy small print to make sure you are totally clear as to what your basic homeowners insurance doesn’t cover which will generally include damage due to natural disasters such as flooding or earthquakes. You can purchase flood insurance separately, through your homeowner’s insurance provider, but the policy will be with the Federal Flood Insurance Program. The contents element of your homeowners insurance will cover you for everything inside your home including carpets, curtains, clothes and furniture (anything that isn’t classed as structural). Your homeowners insurance will also usually cover you for lost or stolen cash and credit costs and loss or damage to your personal belongings while off the premises. It’s really easy to underestimate the amount of homeowners insurance you require, for contents, so the best way is to do a full inventory of everything you own. As stated previously, never leave yourself exposed by not ensuring that your homeowners insurance covers you to a sufficient level for third party liability. If someone trips and falls down the stairs you’ll need good insurance and if you don’t have pet insurance then liability protection could be just what you need if you pet damages someone else’s property. If you lost your home for any reason your living expenses would significantly increase particularly in the early weeks when you are living in hotels and eating out. Make sure your homeowners insurance covers you for such costs, the level of insurance varies depending on which homeowner’s insurance policy you take out so pay particular attention to the benefits you will receive when getting quotes for your homeowners insurance. If you are renting your property you need to take out renters insurance rather than homeowners insurance. As you don’t physically own the property you will not be able to insure against damage to the building, only against damage to your own personal possessions. The cost of homeowners insurance varies depending on such things as level of cover, size of house, type of house, value of personal possessions and the area in which you live. You will need to get a homeowner insurance quotes to get a full understanding of how much your homeowners insurance will cost. Always get several quotes as shopping around could reduce your annual cost of homeowners insurance quite dramatically and, as with most insurance nowadays, shopping online generally results in some of the most competitive prices.

Some California Markets Start To Cool Off

Mon, 09 Oct 2006 01:30:36 -0800

The article still leaves a positive tone, but how long will it last?

Financial Payoff For Your Remodeling Project

Sun, 08 Oct 2006 01:22:54 -0800

Be reminded to take the numbers with a grain of salt. It might work when the housing market is booming, but in a cooling market like this?

Should You Buy Flood Insurance?

Sun, 08 Oct 2006 01:12:16 -0800

Many suffered from recent hurricane hits painfully realized that flood coverage is not included in regular homeowners' insurance policy. If you live in hurricane zones, think twice before you say no to flood insurance.

Should You Buy Earthquake Insurance?

Sun, 08 Oct 2006 01:12:12 -0800

I have asked myself the same question before. Although I lived in the state of Washington, I chose to try my luck couple of years ago. However, if I get a chance to choose again, I will opt for earthquake insurance coverage. After all, if you live in one of the high-risk states, you don't want to save a few hundred dollars while risking your long-term financial plan.

12 Ways To Save On Utility Bills

Sat, 07 Oct 2006 16:45:33 -0800

1. Be diligent about turning off lights when you leave a room and teach your children to do the same. 2. Use ceiling fans or personal fans instead of air conditioning. Open your windows during the cool part of the day and use ceiling fans to help circulate the cool air. 3. Use your microwave instead of your regular oven when you can; it uses less electricity and doesn't heat up the room. 4. Change from incandescent to fluorescent bulbs in your light fixtures. 5. Turn off your dishwasher during the dry cycle and let the dishes air dry. 6. During cold weather, after baking in your oven, turn it off and open the door, allowing the heat to help warm the room. 7. When buying new appliances, buy the most energy-efficient model you can afford. 8. Consider using insulated drapes and/or shades on your windows. 9. Try lowering the temperature on your water heater. Gradually lower it until you find the lowest temp you can live with. Even a few degrees can add up to savings on your utility bill. 10. Install an inexpensive insulated wrap on your water heater. Also, remember to just turn it off when you are going to be away from home for several days. 11. Call your electric company and ask if the rates are lower during certain "off-peak" hours. If so, plan to use your electric appliances during those times. For example, washing dishes, clothes and maybe doing some baking. 12. Air dry your clothes when possible. Your dryer is one of the biggest energy users in your home. 13. Experiment with washing your clothes in cold or at least warm water instead of hot. Washing even a few of your loads in cold water can save money.